Organic in 2020, a safe haven during the pandemic

The figures of organic in 2020 show how consumers chose to pay more attention to health and the environment in their food purchases during the pandemic year. The market trend – in Italy and in the main EU and non-EU export destination countries  Made in Italy – is documented in a precious special issue of the magazine  Food. Based on Nomisma and Nielsen data.

In Italy, as of June 2020, organic products accounted for 3.9% of total food and beverage sales, with growth exceeding 5%, confirming a trend ongoing for two decades. The spike in organic product sales, around 20%, has consolidated further progress in some categories.

Eggs, 1 in 5 is organic

Organic eggs  stand out among the  best sellers, with an 11% growth over the previous year allowing it to reach 110 million euros and nearly 20% share of the category. This means that today, in the shopping cart of Italians, 1 in 5 eggs is organic.

The supply of organic eggs has also expanded thanks to consumer awareness of the value of free-range laying hens. The large-scale retail trade in Italy has therefore adapted and also expanded the supply of organic eggs, the ultimate in animal welfare and sustainability at acceptable prices.

More homemade sweets and fewer snacks

Another surge of sales concerns flour, queen of the renewed passion in the preparation of homemade sweets during the  lockdown of 2020. Sales of organic flours increased by 44%, reaching about 25 million euros and a value share just above 14% of the category.

The increase in preparations of homemade sweets has inevitably led to a reduction in the sales of biscuits and snack cakes, -10%. The absurd communication campaigns by the industry association, which tried to stigmatize homemade sweets in favor of  snack ultra-processed ones.

Fruits and vegetables

Organic fruit – almost always packaged, unfortunately, due to certification defects at the point of sale – saw a significant increase in sales (+12%), reaching 6% of the entire category.

Good also the trend for organic vegetables. Sales of organic products increased by over 7%, reaching nearly 5% share of the category.

discount stores e ecommerce, the  boom

The sales channels of organic products with the greatest growth are the  discount stores and theonline. The former, +11-12%, are rewarded by the growing availability of products at very competitive prices. Theecommerce, where many producers who have organized direct sales with home delivery have entered, in turn attracting many consumers towards short supply chain organic products.

During the  lockdown specialized stores also gained market shares, with growth around 25-30%. This phenomenon coincided with the need to shop at local stores, to the detriment of large-scale retail outlets in peripheral and less accessible areas during the worst phase of the pandemic. It has indeed downsized, returning to +6.5%, in line with the already emerged data.

In Italy, 15% of cultivated land is organic

Organic production concerns about 15% of Italian cultivated lands, as has been seen. More than half is concentrated in four regions. Sicily with 400,000 hectares, followed by Apulia, Calabria – areas mainly dedicated to citrus and olives – and Emilia-Romagna. Organic fruit and vegetable cultivation grows by 10%, olive cultivation continues to grow at a slower pace.

Organic Italian sugar, the new that advances

The beetroot Organic sugar beet was introduced by the beet growers of the CoProB cooperative, founded in 1962 in Minerbio (Bologna), Emilia-Romagna. Here – and in 6 other regions (Veneto, Piedmont, Lombardy, Friuli-Venezia Giulia, Marche, and Umbria) – the 5000 member farms are reviving (or recovering) a traditional crop with an innovative project.

Under the banner of short supply chain and traceability from field to table, already 140 farms cultivate 1600 hectares of organic beetroot. With the prospect of expanding the range, as the conversion process of new shares of the total 33,000 hectares cultivated with beetroot is completed, as we have reported.

The food industry is increasingly organic

Also the agri-food industry continues to move towards organic. The major companies now have their own organic line, as well as private label products (private label).

Champions of  export Bio

Italy confirms itself the first European exporter of organic food, second in the world after the United States. Organic exports are worth about two and a half billion euros, about 30% of which are marketed abroad with private label of foreign distributors.

Fruit and vegetables represents 20% ofexport, followed by plant-based milk substitutes. In this sector, Italy is among the top producers worldwide and exports to over 40 markets. It is precisely from thisexport about 80% of the turnover derives. Followed by pasta and rice (12% ofexport organic), oils (10%), fresh and processed meats, and wine (8%).

Organic wine Made in Italy

Organic wine Italian organic wine continues to grow significantly, also in terms of quality. Among the major productions stand out Chianti Classico (star of a recent brand protection victory) – with 30% organic production – and Franciacorta, where organic has reached 50%.

Encouraging is also the conversion of Cantine Ferrari, a leading label in sparkling wines, wines much appreciated both at home and abroad, but still involved in significant environmental pollution.

The organic products we import

Imports of organic foods in Italy mainly concern unprocessed foods. Those of tropical origin, such as coffee and tea, spices and cocoa, cane sugar and fruit, mainly pineapples and bananas. Theappeal  of the latter continues to grow also thanks to the spread of news about the presence of pesticides in conventional bananas, which we have reported.

And also, we import basmati rice from India, soft wheat from Canada, as well as cereals and soy destined for zootechnical use.

Germany, the leading organic market in Europe

Germany is the first European market for organic products, with a turnover of over 12 billion euros and a share of 5.7% of food sales. One in two consumers regularly buys organic, with an average per capita expenditure of €130/year.

As elsewhere, the  lockdown has boosted organic sales (+30%) also in Germany, where the  discount stores are the protagonists. Lidl, for example, collaborates with the Bioland association and subjects many of its organic products to certification even stricter than the European one. A strategy that has attracted new customers, including high-end ones, unfamiliar with the typical rock-bottom price logic of this channel.

The British surge

In the United Kingdom, 2020 ended well for the organic sector. Sales of  organic food & beverage rose by 6.1%, with a spike of +18.7% during the  lockdown.

In stores of leader of Tesco distribution, for example, top seller are bananas Fairtrade, with an average of 261 thousand daily sales. Organic eggs then show unprecedented growth, 48 million in the last 6 months.

France, ready to overtake

France gallops ahead, more committed than other EU countries to the ecological transition. According to theAgence Bio, in 4 years the French organic market will grow by 50%. Also thanks to mergers between GDO giants and specialized chains, already successfully tested among Intermarché e Comptoirs de la Bio.

Supermarkets and hypermarkets control 55% of the organic market across the Alps. Carrefour is at the forefront, as suggested by the acquisition of the bankrupt Bio c’Bon group. Following are Leclerc and Intermarché. Lidl is also advancing well, with a growing market share of 5.4%.

Organic across the Atlantic

Organic ferment also exists in non-EU countries. In Canada, 67% of consumers buy organic food at least once a week, despite prices increased up to 60%. The business volume in 2020 exceeded 3.1 billion euros (5 billion Canadian dollars). Of this flow, 780 million euros come from the sale of imported products. Coffee, bananas but also strawberries, tomatoes, and spinach. The Empire group stores have also launched a vertical garden to provide customers with fresh products too delicate for transport.

In the United States the organic market is also very lively. Just before the pandemic, two organic chains (Lucky’s Market and Earth Fare) declared bankruptcy, but the sector remains in excellent shape. The turnover has more than doubled in 10 years, from 24 billion US$ in 2010 to over 55 billion in 2020, and organic now represents 5.8% of food sales. Leading growth are giants like Walmart and  discount storesIn addition to Whole Foods Markets, which is leveraging promotions to expand the customer base.

The Australian anomaly

In Australia  A situation inconceivable to us is reported. The use of the organic label/organic appears to still lack adequate rules for its purposes, to the point that operators could cite it on the label even without meeting the full requirements or by using only one organic ingredient.

The market of authentic organic products is also growing in the land of kangaroos. According to Australia Organics, at least two out of three purchases of organic food are driven by concerns for one’s own or children’s health.

China and India, huge growing markets for organic

In Chinathe desire for healthy eating focuses on  snack and home consumption. The driving force is represented by  Millennialsof whom 81% declare choosing snacks prioritizing fresh and possibly organic products. A desire that opens new opportunities for  partners foreign commercial partners, including Italians. By 2024, the Chinese organic food market is expected to exceed 13 billion dollars in revenue.

India in turn represents an organic market of one billion dollars. With the  lockdown from the pandemic, sales of organic rice and legumes have doubled. The turnover stands at around 860 million euros (one billion dollars). Amazon India has ridden the phenomenon, promoting the consumption of organic products with discounts up to 50% on dozens of imported brands, including Dal Monte extra virgin olive oil.

Russia, still a niche market

In Russia organic food is the privilege of a few, especially wealthy young people living in major cities such as Moscow and St. Petersburg. The reason is that organic products can cost up to 300% more.

It is not surprising therefore that the organic food market represents only 0.1% of food sales, 80% of which are imported. At the national level, the VkusVill chain matters, which in just over ten years has gone from running a local stall in the Moscow suburbs to opening 1200 stores supplied by local producers.

Marta Strinati